Sbi Holdings Inc Ord

Thank you very much for attending our financial results brief session despite your busy schedules today. Without further ado, I would like to go into the explanation. FY 2022 consolidated performance mostly up to the third quarter. What I have been explaining to you applies to the full year. What I mean by this is that The profit deteriorating is $30.7 billion. Vietnam, TP Bank, we had to do a write-off. Or $15.7 billion crypto asset-related business was a negative result came out, and that has impacted this full year. Regarding this full year, what I definitely wanted to do There are two things. The first is to have the revenue exceed 1 trillion yen. Unfortunately, it was 998559. We experienced a 30% plus growth, but it did not reach 1 trillion yen. In terms of the profit before income tax expenses, this is the only part we look. With this, we have exceeded 100 billion yen. Therefore, what we have forecasted and wanted to achieve, we have come close to those. Especially if you look at this, this is the comparison of consolidated profit before income tax with major securities companies. And as I have mentioned right now, it's $100.7 billion. Nomura Holdings is $149 billion. profit before income tax. And Daiwa is 96.766 billion. SMBC, Nikko had various things as a large negative. Mitsubishi UFJ is 82.9 billion. Mizuho was a negative result. This is the securities companies group. There is Nomura has a trust bank or Daiwa has the bank in their group. Therefore, this is the Apple to Apple comparison. So this was the situation. So looking at these situations, I believe that we are doing quite well. And also, in terms of the revenues, this is looking at the 10-year time frame. You can see that we have been continuing to increase. F1 21, 22, 23, we have been largely increasing the revenue. And my hope is to exceed one trillion yen. And we were slightly short to that. In terms of the profit side, we have many volatile industries, especially in the investment business. Therefore, it's quite volatile. So 30 to 40 billion to 60 to 70 billion, and we have reached the level of exceeding 100 billion. So FY 2022, SBI Shinsaibank and former Shinsaibanks, the goodwill, a lot of that was included. Therefore, if we exceed that, it's 217.1 billion. So therefore, this time, it's 100.7 billion. And looking at this by segment, the financial service businesses, for sure, is growing. Financial services business revenue is plus 78.2% year-on-year, and profit before income tax expense is plus 42%. There was the negative goodwill, which is 195.6%, but if we exclude the Shinsei Bank one, it is a 42% increase. And this part for us is the base. area in terms of businesses. Asset management business, it is starting to become the base business area, and we would like to have it to become the base business in the full scale. Investment business and crypto asset business, it goes up and down. When they're good, they go up. When they're not doing well, they go down. If you look at the South Bank's financial results on the group side, I'm sure you understand what I'm talking about. Crypto asset business, it's The market currently in terms of the legal system and system is not well established, especially in the United States. Therefore, it will still take time for the market to mature. Non-financial businesses, there's biohealth care and Web3 businesses are included. This is the quarterly revenue by segment. And looking at the revenue, financial service businesses for sure is increasing the revenue. Asset management business is surely growing as well. Investment business... When they're doing well, they're doing well. When they're not doing so well, not doing so well. That is the current situation. Crypto asset business and non-financial business is as shown. This is a quarterly profit before income tax expense by segment in an IFRS basis. As you know, within the financial institutions, we were the first ones that have implemented the IFRS. Currently, we are under an extremely difficult economic situation. If you implement IFRS, the Japanese insurance, life insurance, and mega bank or the bank financial results, I wonder what would have happened. So in that sense, it does not show up on the service. But the unrealized loss, there are quite many of them. One mega bank, I looked at their result numbers, and I was surprised. One year ago, it was $2.8 trillion unrealized gain. It's now down to only $800 billion, meaning that they have lost $2 trillion. And not just that bank, but in other companies, such as the life insurance and insurance companies, they're all having this unsurfaced loss. The IFRS, it will surface, but in Japan, they're quite devised. Because it's not surfaced this time, when we face the interest rates rising, what is going to happen? Really, Japan, I won't say they're trying to purposely hide it. If the people who know about it look at it, they will know. But the very deep down parts do not surface. Therefore, if the investors buy and sell just looking at the surface, it will become quite of a deal. So I myself... From my 50 years experience in the financial industry, this is the... I've never seen a time that is as difficult it is right now. This is what we are facing. And in terms of the dividend, basically, the financial service business, as you have seen before, is steadily growing. Therefore, we decide on the dividends based on this. So... Full year dividends is 150 yen, which is the same amount as fiscal year 2022. Total payout is 113.5%. So total shareholder return is 40.8 billion. And we will continue on the shareholder benefits. So I would like to simply explain about the business segments, financial service business. As I mentioned before, revenue year to year is a plus 78.2 percent profit before income tax expense. There was a one time a special negative goodwill occurring. And if we exclude the 150.6 billion, it is a 42 percent increase. Financial service business. The securities business is included in here. And how did the securities business perform? The operating revenue, which is equivalent to revenue, is the record high. Net operating revenue record high and operating income was a record high as well. Ordinary income was a minus 1.8% year on year. Profit attributable to owners of the company was plus 3.6%. This is the JGAAP results. And regarding the revenue or net sales structure is as so. So there is a trading revenues, and we are increasing the financial revenues. And what happens to the other commissions, the online stock trading transactions? Within the total, this comprises 11.2%. In the third quarter, it was 11.7%. Therefore, it went down further. And that is why we are going into realizing the new securities until we are trying to make this to zero. This is the like-for-like comparison of 20 main financial companies. We are just looking at the securities of business. What I've showed you before was at the holding level, the overall holding level. If we look at the securities level, Nomura Securities, we have exceeded them in ordinary profit as well as in operating profit. And Mitsubishi, Mizuho, Rakuten, Matsui, GMO, Manix, and Daiwa Securities. That is the order. I don't know why. However, I don't know the Japanese, even now the Japanese media will say the five major securities companies. Who are the major companies? And they line it up in that way. That's questionable. Because they're doing that, they're behind their time. All of them are in a time where everything is changing into digitalization. And the media, they're saying these are the five major companies. I can't believe such medias. If you do such a thing, people make mistakes. Like I have mentioned before, if everything change into IFRS or a USS standard, then you will see everything clearly. And that type of accounting standard, the companies that are using such standards, And there are companies that are using a standard that you can not see that clearly. This is the same thing. The times of physical real things have ended. And if you continue to hide such things, I will not say or conceal those things. I will not go that far, however. you will not be able to see the true situation, and investors will experience a loss. So there's quite a great responsibility on the media side. The numbers that were announced today, well, I will be announcing from now, which is related to the TOB, related price. It says 3,000 yen. Nikkei says 3,000 yen for TOB. They said ¥3,000, and the price that we said is ¥2,800. Everybody went to buy for it, but TSE stopped the trading. But if the trade was not stopped, what kind of loss would have been caused to the investors? coming out of it early or late, coming out with the news early or late, that is not the work of the media. To actually have an accurate reporting is their job. And this type of insider information, well, closely related to such insider information, if they just report it without knowing the whole story, I think as a media, they are rock bottom. If they would do such a thing, nobody's going to support them. Media, as much as possible, needs to be accurate as much as possible. Whether they report that early or late, that's irrelevant. After the Board of Directors meeting, then we can disclose that information, and that information goes to TSE. It's being examined and screened, and then we can finally officially release that information. The Accountal Financial Bureau or the FSA, it has to be taken up by them, depending on the case. And such a sensitive issue. And... At the PTS, people who bought through PTS, there were several people close to the price of 3,000 yen. And these people, of course, are going to complain. So I will say, please launch your complaint to Nikkei. Well, as the media's true mission to be conducted, I am going to provide them warning signs. writing an untrue article or just an article based on their estimations. If they write it as their own opinion, that's fine, saying that SBI's number of accounts is at 12.8 percent CAGR, and from the 2009 March to 2023 March, the CAGR is increasing. So we're in a position that is not in a position to compare with others. And this is the group's share of individual stock trading value, which is 46 percent and 47.2 percent. It is exceeding as well. Why does it increase? It's quite a simple reason. We have been consistent in a customer-centered policy. And because we do it for the customers and investors, we experience increasing. We have the lowest commission. We provide them the services. The liquidity markets, operating revenue, this has increased to a record high. Unfortunately, Silicon Valley Bank, starting with Silicon Valley Bank in the United States, the banks are... collapsing, and then the foreign exchange moves, interest rate moves. Globally, we are seeing such movement, and there's going to be high volatility. And banks sold short, and then they just reversed that for one time. But the essential issue has not changed. It has just worsened, meaning that in that short of a time, increased that much of interest rate, saying the economy is strong. the commercial practices are strong of course it is because during the covet pandemic they had that much of a subsidy from the government and that has increased the savings in percentage and that was supporting the commercial activities but then the war has started the energy prices hiking So we are in the extremely difficult times. And in this situation, how are we going to generate profit? As you can see by looking at this, because there's a factor that because there's vulnerability, we are making profits. That is why we have to diversify the customers and products. In this situation, times that we have a heightening of uncertainties. What we need to do is diversify. FX-related business, both overwhelmingly strong. And in overseas, this is a diversity. We need to diversify this, because if Japan is not doing well, go overseas. In Thailand, FY2023, their profit before income tax expenses has increased 300 million, and Royal Securities in Cambodia and the Year-ending December 31, 2022, their profit was 100 million yen. They're going to continue to grow. Bank business, SBI Shinsui Bank. Gross operating profit plus 10.4. Ordinary business profit plus 26.5%. Profit before income tax expenses plus 82%. Profit attributable to owners of the companies, 110.3%. This is based on JGAP. With this, in IFRS, how much were we able to gain? It's 54.6 billion yen in terms of profit before income tax expenses. Number of retail accounts. Well, we became the market's largest shareholder, and as made it a subsidiary company of ours, Shinseng Bank continued to grow. And the deposits. is getting close to 10 trillion, and also the number of accounts is close to 3.16 million. It's finally have turned around. For a long time, the deposit balance has now turned around largely. Of course, Japan is going to experience an increase in interest rate. Therefore, at this time, increasing the deposit has quite a bit of meaning for a bank business. SBI submission, NetBank.

For 23 March, on June, in September 29th, we were able to go to market at a cheap price We were able to do the offering, and then after, share prices obviously went up substantially. I also think this is an issue, though. Why at that phase? Well, Rockton Bank probably feels the same. Why did they have to go to market a cheap price? The issuer's profit was neglected. And they were being protective of themselves. Was that the case? When it comes to underwriters, I think they need to take on more risk. No, they might say it doesn't fit overseas. In that case, they should just try to do something domestically in Japan. Why do the Japanese underwriters... have to depend so much on the overseas international markets. Of course, the international markets will try to bring the prices down by huddling together. So direct listings should happen. If it's a large scale, that should happen more and more. Without going through brokers, companies should directly list on the market. Several times the FSA was saying that the offering price is a little too low. The gap between the offering price and the stock price then after was too substantial. And experts were also saying so. So why is not this issue being rectified? So performance of SBI submission net bank, $29,390,000,000 was the ordinary profit, which increased by 26.3%. Our investment profit on a pickup basis was $4.8 billion. So why is it declining? Because our ownership used to be 50%, but it went down. I think it's now at 36.2%. Therefore, the profit pickup went down as well. But we were also able to get gains on sales of shares. So for SBI submission net bank, since its establishment, it has continued to increase the balance of deposits as well as the number of accounts. So now deposits are around 8 trillion yen in balance. 6.15 million accounts are supporting the performance. SBI Savings Bank in South Korea is next. Performance used to be good, but this time around, the profit before income tax expenses went down by 29.9% on an IFRS basis. Like the U.S., rates went up. And obviously, when rates go up, bank earnings... does not go up immediately. It goes down once. I'm sure that, however, we will see a recovery. And they have stopped raising rates. So in the second half of the year, performance improvement is expected. So that's what I've been hearing from my people. Also, in the case of South Korea, we need to watch out for people who live in the property market more than Japan. And we have a tendency where they start to pursue business opportunities in property. So I said no. So in this bank's case, the exposure is minimal. Therefore, that has turned out to be a success. So they are starting to learn what I said is right now. So for real estate in South Korea... There is an aspect where it's driving the economy. However, once things start to deteriorate, it becomes the most scariest. That's why I was saying that we should have a broad base of customers collecting deposits and lending to them in a steady way. And I've been saying that that's the safest way to do business all along. since we acquired the business in 2013. I have continued to say so, and that's how the business turned out to be. So when we acquired the business, the liquid rates used to be 51.6% for all loans. However, it was around 1.something percent. Now it's a little bit up to 3.36%. But we have been able to settle at that level, and we're expecting a recovery from the second half, so I think we're fine. Other foreign banks. For TP Bank in Vietnam, performance continued to climb steadily. But Ho Chi Minh, the market has continued to deteriorate. Therefore, valuation losses were recognized at 30.7 billion, like I mentioned earlier. So this was a damage for us regarding its performance. However, in the backdrop, The number of shares we had was 19.9% ownership. If we had 20% on an equity accounted basis, we wouldn't have to have done the write-offs. However, because the 20% is the maximum, as a system in the same company, foreign investors' ownership is not able to exceed that level. Therefore, with these two conditions of police, 30 percent is the level we shouldn't exceed. And we were already at 30 percent. And because there was an interested buyer, we were able to reduce it to 20 percent. But now we are fine. So this is Russia. There may be concerns that the business is going to go down, but we were able to see profits for 486 million for Q1 for the year ending December 2023. And for LY, our bank in Cambodia, which we own 70% of, $169 million was a profit before tax for Q1. And for the full year, it was $921 million for the year ended December 2022. So it's growing at a good rate. So I'm really looking forward to Vietnam as well as to Cambodia as well. So total assets of the banking assessment in the SBI group are shown here. It has reached around $26 trillion on a pure capital. So when you compare this against others, Fukuoka Financial Group is at $28 trillion and Concordia is at $24 trillion. and so forth. Looking at the insurance business, SBI insurance groups, consolidated performance is shown here. Ordinary revenue went up by 8.8 percent at 96,110,000,000. Ordinary profit was 6.3 billion, up 6.5 percent. Profit attributable to parent of the company was 1.24 billion, up by 39.1 percent. For dividends, we are paying out 10 yen a share. And also, regarding enforced contracts, it has been steadily increasing. Kager has been 14.6% from 2016 March through March 23. For the asset management business, the reason why it's growing is because the Morningstar brand has been returned to the U.S. Morningstar. We've been receiving 8% billion in return. So this 8 billion, we would like to use it for M&A in order to acquire a quality entity. That's what we're trying to do. And this business has grown steadily as well. And as one of the pillars of our business, we would like to nurture the asset management business even more. The Morningstar grant has been taken off for this intent. For Rios Capital Works, it has been listed. We own 48.89%. The name is going to change to SBI Rios going forward. We're actually discussing whether we should change the name or not. I will probably make the final decision. So SBI Global Asset Management. This is basically the new name for former Morningstar. Underneath, we will have SBI Asset Management, Wealth Advisor, and Carrot. The investment business is the next slide. So this is mainly about the private equity business these days. It has been challenging. However, for the unlisted securities, we still have positive profits. Although it has declined, we are still positive at $18.181 billion. For the list of securities, it was hit straight by market trends. So for about 40 companies are expected to list in fiscal year 2023. And for private equity... It excludes $257.1 billion of both cash and commitment amount to be paid, but private equity is around $682.4 billion. So this is one of the greatest private equity companies in Japan already for SBI leasing services. It used to be too good before in the previous fiscal year. So it's down at the bottom line. But realistically speaking, this is basically the performance. For crypto asset business, FTX, as well as others, went bankrupt. So we were hit by losses. From our point of view, we may have needed to have scrutinized the business a little bit more in hindsight 2020. But we are leaving this business to our international people, and it was being managed by the international employees. But now when it comes to budget management, In managing investments, we are scrutinizing the details more than before. That's how high the volatility of this business was. $18.5 billion was the amount we were hit by. For the non-financial businesses, I feel that we need to change the name of these businesses because Web3 does include some financial businesses like LeFi and so forth. So I'm contemplating about this name, but right now it's defined as non-financial businesses. Of course, it does include biotechnology, healthcare, medical informatics businesses, which are, in fact, non-financial. But in Web3, There are, in part, some non-financial businesses. So there's various types of businesses included, basically. So this is the ALA business as well as the biotech business. For the biotech business, for March 23, milestone revenues declined. So profit before tax declined. But we are preparing for an IPO. And it has a good pipeline for the ALA business. Things are going well. But we are spending quite a lot of R&D at the same time. So that is why we're seeing these results. And for SPI Alla Promo, which is mainly engaged in sales, it is also preparing for an IPO. So Alla Promo is selling these products like Alla Plus Toe Down, Gold EX, basically products that contain Alla. And also Deep Sleep, Fukai Nemuri, or Hirokan Kegen, fatigue mitigation or melting care. Drinks are also available online. that all contain ala. One ingredient can be applied in various ways, and the consumer's office acknowledges its impact, and it's being applied for cosmetic products nowadays as well. There are over 20,000 distributors now nationwide in Japan. So finally, we've been seeing good growth, and that is why we decided to go to the market. Furthermore, for Machinoa, which is also another non-financial business, this is a local currency business in neighborhood shopping areas. You're able to use this. It comes with premium e-coupons. It's also another part of business. And we do this as a joint venture with Chikuho and so forth. And it has turned to the black market. and we expand the service to 50 regions nationwide. So going into the main topic, I touched upon this earlier, but the global economy is in a state of chaos, and uncertainty is increasing even more than at the time of the Lehman crisis. That's how I feel. So under this circumstance, the SBI group, we'd like to focus on three areas on a group-wide basis. in a detailed way so that we could diversify the risk and also expand our revenue sources and develop more revenue sources. In times like this, we need to thoroughly expand our customer base and diversify our customer base. This is the way we should go. In this way, we would like to diversify risks so that we can manage to overcome this these challenging times. Even back in the Lehman crisis days, we took a series of measures, and as a result, we didn't need any help, and we were able to survive, and we were able to come out strong in light of the crisis. So we need to think ahead of others and take action. Back in the Lehman days in South Korea, we sold all of the shares before the Paribas shock of Gyoho Life Insurance. And E-Trade Korea, which we made from scratch, we decided to take care and get rid of it. And moreover, there was a listed entity, SBIE Trade. We decided to buy it back. So those are the series of measures we took in order to prepare for living crisis. we would like to increase the customer base as much as possible and diversify the customer base as much as possible. In order to diversify customers, we need to diversify financial products and services, as well as business fields. In this way, even if one thing doesn't work out well, we want to create a situation where the other part of our business is doing well. In difficult times like this, this is a must. So regarding diversification of customers, how are we going to do about this? When it comes to our customers, we already have 45,647,000 customers, but we would like to bring this up to 100 million as soon as possible. And one way of doing this is to promote neo-securities initiative. This will be our weapon. In fiscal 23, first half, we would like to launch the neo-securities initiative, and we are preparing right now. So for commissions that investors are burdening right now, we would like to make this free and eliminate their trading fees. Since the 1999 founding of our company, when it comes to commission, when you look at the basis trends, which is brokerage commission divided by brokerage trading value, it has come down to a very low level, to a marginal level, actually. So it's overwhelmingly low cost. And we have been thorough with our customer-centric approach. And that is the reason why we have been able to establish top position inside our industry.

To reduce transaction costs for investors, we have been taking various measures since 2019, one after another until today. We have been announcing measures that have been realized to date. As a result of such, for us, if you look at the revenue through online trading, the domestic stock brokerage commissions from online trading, which are free of charge, now that ratio... has been down to 11.2 percent of operating revenue and a third quarter which was 10.4 so there has been a significant decline. So how are we maintaining our revenue? From margin trading, the open interest credit balance and financial revenue increased significantly, or rather, the investment trust balance, quarterly balance, was record high, and investment trust fees, comparing year to year, increased 9.5%. And FX business trading revenues has become one of the pillars of revenue. Perhaps for customers, if you realize this, I believe that we will be able to achieve 20 million soon. Now, from 10 million accounts to 20 million accounts, it is not difficult to reach that level. Then what is going to be a challenge for us? That is systems. Therefore, in order to address the systems issue, in January, we have established a joint venture with Simplex, SBI Simplex Solutions. This company was established. which was incorporated on February 28th. And the Capital and Business Alliance was formed and signed in January in 2023. So by doing this, we are strengthening the system so that we can accommodate that money as 20 million accounts. When the number of customers increase, for example, the customers who opened accounts with SBI securities, many of them are actually neophytes or novice. They may be interested in doing some other transactions such as margin trading or IPO trading within SBI group. For example, purchasing domestic and foreign bonds or FX and also foreign stocks and so forth. They will increase transactions within the group and exceeding the boundary of group. There is the outside and inside of the ecosystem of the group of SBI. The customers may be migrating to different entities. And then on the contrary, the customers within the ecosystem of the group may be interested into this area as well if the commission is now zero. And then they may be interested in transcending the borders of the ecosystem. Now, collaboration with SMBC Group. Now moving to the next phase. We have been doing many things. I myself believe that this mobile comprehensive financial service of SMBC Group is providing a leave. For us, this is really appreciated by us. And this, SBI Securities, It's a main provider of online securities and with Mitsumitomo Mitsui Banking Corporation and a Mitsumitomo Mitsui cards application can be utilized in order to provide the very highly convenient securities related services through their applications. And a viewpoint can be applicable and acquiring 2 million securities accounts in the first five years and in three years, 50 billion yen in amount was accumulated funds through credit card in three years will be achieved. And this is what we are aiming at and we are currently discussing on the measures to be taken. So far, what kind of customers we have acquired so far? Based upon our analysis, more than 50% of customers inflow from Olive are under 20s. And more than 90% of customers inflow from Olive are neophyte investors. For us, this is exactly what we wanted to acquire. With this alliance, through Olive and Mitsui Sumitomo Card and also Sumitomo Mitsui Bank, it is now possible to get the brokerage from them. And so to speak, Sumitomo Mitsui Banking brokerage customers have relatively high income and financial asset base with rich experience in investment. Also, age brackets are relatively higher. And we are aiming at the further expansion of the multi-point ecosystem. Rakuten is making its own Rakuten ecosystem to encircle customers within their ecosystem. And we are touting the multi-point ecosystem, T-point and V-point and Ponta-point and D-point and so forth. We are expanding our alliance and partnership with various partners in order to carry through multi-point ecosystem. This is the multi-card strategy. Through credit card, customers are now expanding accumulation funds through credit cards. At the end of March 2023, now 18.2 billion yen has been accumulated through this scheme. We are working towards expanding business and financial corporate clients by leveraging the diverse management resources of the SPI group companies. Rather, so far, we have been targeting individual retail customers. But now... when we decided to buy Shinsui Bank. And one of the significance of buying Shinsui Bank was to expand the corporate market business and also the financial institutions with whom we have partnered. And also, furthermore, there are various measures to strengthen their partnership. And this acquisition can be one of the measures to strengthen partnership with financial institutions. That's what I said to my people. And now, at last, we are embarking on the expansion of our entry into our corporate market. As I said earlier, underwriting, we are making very stretched So that we will avoid making the losses and making the customers who buy happy and also the issuing companies will become happier and we need to promote underwriting in that way. For insurance business as well, we are trying to meet the needs of corporate partners by expanding the products and services to meet those needs. Anyhow, with the diversifying customers, and one of the big factors for this is to aim at gaining business with financial and corporate clients, we need to expand and build this customer base in this segment thoroughly. All the entities in our group will come up with their products and services in order to approach and attack the corporate market clients. Now, securities business. The underwriting share in IPO is 98.9%. From April 2022 through March 23, there was the 93 companies and we have been able to become the lead manager for 15 companies and 98.98% underwriting share and also we are focusing on the underwriting business for corporate bond and for the electric power company bonds we are asked to lead the management of the underwriting lead manager from There were 15 companies. As lead manager, we were engaged in the dealings between April 22 through March 2023. What is necessary in targeting the corporate market is the M&A advisory. And M&A advisory division was established within SBI securities. and supports that the one is set for the FY 2018. And 7.5 times of the advisory revenue was gained for fiscal year 2022. So I believe that this has been announced today. And Tsuji Hongo. with whom we have been doing a lot of cooperation, M&A Solution of SBI and Tsuji Hongo M&A Solution. We are going to merge together so that we'll be able to strengthen M&A for business succession. The timing of the merge is October 2023. for corporate market, the FX market, and OTC trading of currency-related derivatives, including futures and options. In this segment, we have been working with Mrs. Watanabe or retail customers, but now we'd like to increase corporate customers. corporate market. Daily transaction value is 74 trillion yen. Therefore, this represents huge market. Furthermore, the They integrated private REIT investment in the broad array of real estate. So in order to do this business, on 8th of May, we announced that SBI private REIT investment corporation shall be established and then 100 billion yen in three to five years and 500 billion yen in 10 years. That is the image of the fund size. When I was in New York, Well, I don't think that there are many Japanese people in your business negotiation, but equity and bonds are not enough, and cash management needs to be added, and also management of the property needs to be added. These sections are a must. in approaching customers. And then REIT, or private REIT. I thought that this would be the best approach. Therefore, we decided to enter into this segment. And we are increasing corporate and financial customers through collaboration with the SBI Shinsaibank Group. And there are Atlas Lake and others. So we have been increasing the lease and others by having the organic synergy so that we will be able to expand significantly the customer basis in the corporate finance areas. from SBA Sinse Bank to investees or SBA securities. And then the loans and the investment Fifty-one transactions have been already executed amounting to 109.2 billion yen by SSBI's Shinsaibank for venture debts and investments and loans to investees. We'd like to increase this. Apple's bank kit is quite easy to use and a very good system, I believe. For example, for those who are considering issuing the new application, white label plan can be offered. And for those companies already offering apps, embedded plan. These two plans are offered. And by doing so, bars, various ways of bars will be provided. This is what we would like to do. And the insurance business continues to actively promote products development, provision of services to meet the needs of corporate partners. For example, APLAS will deal with the SBI insurance and life insurance products to meet the needs of customers. And SBI insurance will utilize the service services Castella of a Sumitomo Mitsui card. To commence the automobile insurance solicitation initiatives, and also SBA Insurance started providing special automobile insurance for BYD, an electric EV car manufacturer. So there are various products and services to be deployed. And also funeral, a funeral service company and a pet service company and a bridal-related service company's Through these companies, we are forming a partnership in order to provide our products to expand our customer base. SBI NEO Corporate Services for corporate clients. This company provides business matching services for corporate clients in May 2022. A so-called value place was established and launched and there are over 25 diverse categories are provided in order to provide selected corporate services. And companies can have options from this. Or the second round of business matching in various ways, for example, web operators and HRs and also for general affairs and for salespersons and HR staff and so forth. As you can see here, this is very convenient. And nearly 200 services from around 100 companies are listed here.

Number five, promote cooperation with regional institutions. The track record of cooperating with regional financial institutions promoted by the SBI group. We have been having special relationships with the regional banks, these nine banks. With them, of course, there are differences in the amount of the capital relationship. We haven't had very close relations. and we have been helping them out with providing them with abundant capital. However, moving forward, not limited to these nine banks, but given the experience with the nine banks, We are going to target all regional financial institutions, regardless of whether a capital relationship exists or not, and strengthen the business alliances, because there are 100 regional banks. And if we include the trust credit banks, there are more. So in various areas, we can provide the services. And there are banks or institutions that thought they have to have a capital relationship. But we are saying that that is not necessary anymore. That's what we are talking about. And even up to now. Without the capital relationship at SBI Securities, they have a relationship with 49 companies in terms of a partnership. But out of that 40, it's only business alliance, no capital alliance. The red writing is just for business alliance. So if you look at only capital alliance in financial institutions, how many are they? We, till now, in various forms, have been providing our management resources. And the number of that is a very large number. Our wealth advisor is 150 companies, and out of that, 142 are without any capital alliances. Or... The management of private investment trusts for proprietary fund management of regional financial institutions, we have approximately 2.1 trillion yen. Out of that, about 1.43 trillion yen is coming from the institutions that we do not have a capital alliance with. Thank you. So we are showing the change in the number of accounts and customer deposit assets through financial instruments intermediary services. So the regional financial institutions in this way is increasing the amount of deposit assets and also the number of accounts. Or a money plaza. This red writing, we do have the Capital Alliance, but the black letters, we don't. So the deposit assets is increasing steadily. Capital Alliance, SMBC, NICO Securities, we do have that. And SMBC, NICO Securities has one-third of SBI Money Plaza. And they are dispatching people. And to 13 branches, we are having their personnels assigned. So they know about securities. They are familiar with the transactions. Those are the people that are assigned to these shops. And for the insurance and life insurance, this as well. 100 companies, of which 29 are financial institutions, decided to adopt SBI insurance products for SBI life insurance. 82 regional financial institutions, of which 19 are regional banks, have decided to adopt or have started sales of SBI life insurances, group credit life insurance. SBI Life Insurance is actively involved in providing group credit to the General Incorporated Association and we're promoting this group credit. There are 60 institutions and organizations that are members of this association. The regional financial institutions are utilizing the cloud technology at a maximum. And we are providing the economies of scale on a nationwide scale, regardless of business type. The NEO Financial Services is providing the banking apps. There's NEO Financial Services, the banking app itself. We are making the bank telefunctions into mobile. With just this, it's like a net banking. Currently, in this way, Shimane Bank, they are increasing their customer numbers by large. Up till now, they were struggling to increase the deposits, and with this app, they're able to increase their number of deposits, and they're very happy about it. Actively proposed innovative banking systems to regional financial institutions with no capital relationships. Currently, their various challenges of conventional systems. And we, in a nutshell, we are helping them to switch huge system costs from fixed to variable costs. And in order to do that, we have a business alliance with Future Architect and SBI Regional Revitalization Services. And on the cloud basis, using the Amazon cloud, well, it's called AWS, by utilizing that, Thank you very much. And the banks who have been doing that, switching it from the fixed cost to the variable cost is the way to go, is what I have been saying from the beginning. And thanks to the future architect, we are being able to do that. And Fukushima Bank and Tashimane Bank has decided to adopt it. And by 2030, we are aiming to have 10 regional banks to adopt this. And if we're able to do that with the We will endeavor to level out the system cost burden through an annual fee model and return profits through dividends to investors. With the common ATM services, when we change to this system I have explained, we have to have SBI common ATM service. Why do they have to spend money on their own unique ATM systems? Because the bank book is different. No, I just say why don't you make it the same? That's what you need to do. An expansion of the corporate client base through thorough promotion of the Triangle Strategy. Well, I myself with this SBI group and with SBI Seen Safe Bank Group and regional financial institutions utilizing each one of their strengths. And we're saying to expand the management of the regional financial institutions. Well, I call it all three as one triangle strategy. And through that, the structural finance example is the best way to increase the corporate customer base. And with this way, and various banks and regional banks are saying that they want to participate. realizing regional revitalization by involving diverse stakeholders, not just regional financial institutions. Not just the financial institutions, but the local companies. You can actually discover the local companies through the regional bankings. But this SBIDX database, we have the regional financial institutions utilize this, for example, in manufacturing business and restaurants this way. And they are categorized in various genres. in our group or the companies that we have business with, 50 companies are participating and we are providing them with the data. And what they do is they look at this and the regional financial institutions can utilize this in various ways. And introducing that is the role that the regional financial institutions can play. We have nine collaborating banks, restaurants, operations. What can they do to make their operations smarter and more efficient? If the banks are consulted this way, they can show the database and provide advice and strengthen their consulting capabilities. Why don't we incorporate ChatGPT is what I am saying, but the ChatGPT itself, Just looking at my data generation, I'm from Hyogo Prefecture, but it says I'm from Okayama Prefecture. So there are some inaccurate statements, especially the ones related to Japan. The ones in the United States are quite accurate. My name's a database. My name's in Japanese, but the information is more accurate from the U.S. ones, in the U.S. ones. And Mr. Song is trying hard to create a new chat GPT. However, it has to be accurate and precise. It has to be. So various type of information, as something I have mentioned previously, the information has to be an accurate information. It all will be a negative. It will not be a positive factor if it's not accurate. Therefore, our information, the accuracy level is quite high. The local companies, digitalization is what we are supporting. And there is over 400 of projects to business discussions, reaching fruitation in dozens of cases. So we have this, say, quick expense bank and approval time. Each one of them are quite popular now. because they have to do it due to the invoice system or the Electronic Books Preservation Act. So on the tablet, they'll be able to complete it, the cloud-type-based invoicing system. We have 2,100 companies that have applied, and Keihei Bank, Expense Bank, A cloud service compatible with multiple devices for streaming line expense settlement and invoice payment and approval time shown in time is also a multi-cloud basis. And by using this, various approval workflow and document retention can be all concluded on the cloud. We're not in the times of doing this on a paper. Everything is switching over to digital. Therefore... The net securities or saying the five major securities companies saying such things even now is like what age are you living in is my impression. Strategies of realizing regional revitalization have moved to a phase where local governments and local residents are also involved in promoting projects. various financial know-how and expertise, various financial-related management resources is what I am always talking about and what we're doing. But with just that, the... Regional revitalization is difficult. So we have created a company, Regional Revitalization Partners, and we are receiving guidance from them. And the actual execution team is SBI Regional... revitalizations partners, and we are making investments and loans to the regional businesses or the system company that I've mentioned before. We have established such companies. And from there, we have started. And for example, the ERI, the ECHO, excuse me, the ERI. So NECRIS has changes the waste into energy quite efficiently. There's a government ordinance city in Hamamatsu, and we have created one plant there. And many people are visiting. And in the private company, private sector company that are handling paper products, they have implemented that. They have the pyrolysis treatment of the waste at a low temperature, and pyrolysis treatment of combustible gases generated during this, and their carbonized fuel is cooled and discharged at 50 percent, and that is fed to the power generation equipment, and that is converted to electricity. That is the key. And we have ownership of 50% of Japan charging infrastructure, because everything is going to be changing into EV. Therefore, we have to install charging devices more. And our characteristics is that we want to have that installed in the roadside stations. So the number of locations, 230 of Michi no Eki, which is roadside stations, a total of 249 units installed. So it's not just charging. But I would like to make these roadside stations the disaster prevention locations. If there's a disaster, they can go there and they can charge electricity. So I'm hoping that this can be done. With a necklace. There's a regional... A revised relation with just the regional financial institutions is not sufficient. So these type of companies, all of them have to be involved, and we are conducting our initiatives in such a way. This was quite a hot subject and was covered on TV. This Balney Barbie, which is listed on the Mothers, Exchange, together with Shimane Bank and SBI Holdings, the local company, Izumo Attractive, they have teamed up together to create this hotel. From Izumo Shrine, if we have the people actually... visit this area from there, create that flow. This is going to be quite a good tourist resource because it's an inconvenient place to reach. And yesterday I say you should have a shuttle bus running that you can go between these venues. Well, we call it Izumo, which means that the clouds come out. So usually they don't have that much of a great weather. Cloudy weather is quite often. But there is the Izumo Shrine, and there is a Shimane Castle. The fish cuisines are tasty. Not many hotels. So if you go over here, there is... This Iwami Cliff area, so the cafeterias is already created, and they are selling quite tasty items. I did visit there as well. Expansion of the customer base both within and beyond the financial businesses by promoting SBI's machine net banks and neobank initiatives. Customer using business services of partner companies also have access to ancillary banking functions from SBI Simishi NetBank. They act as the behind-the-scenes. partner companies to create a framework by which service can be used by both smoothly and seamlessly. So there is the Mada Holdings, CCC Marketing, Japan Airlines, Open House, SBI Securities, Takashima Company, Daiichi, Life, Fighters, Sports and Entertainment, Geo Technology, No More Real Estate, Milai, K.O. Corporation. Each one of them have quite a large customer base. And to those companies, as the back-of-the-scene partner, we provide these services.

So you might think that we might be profitable through these initiatives, but now we are being profitable. So going forward, for banks, they shouldn't just stick to conventional ways of doing business. So diversification of financial products and services is the next slide. In the securities business, we are making efforts to increase customer satisfaction to acquire new customers by diversifying products and services, capturing the trend from savings to asset building. We are starting to see this trend pick up. So by taking this opportunity, we would like to try to grow this business at once. For example, for equities. Foreign stock services, we would like to expand this substantially. For Japanese equities, how many people are thinking that it will be fine? Actually, there aren't that many in reality. The reason is because it's just Japan where interest rates haven't gone up yet. People are feeling that it will eventually rise. It will definitely rise. So what's going to happen then in that phase? So that's what we're talking about here. That is why, whether it be Nomura, I used to work there, Yoshihisa Tabuchi, that was the president back then. He was a great person. Japanese stocks were going up, and they were saying that it was going to reach 40,000 yen. And the president of Nomura can't say Japanese stocks are dangerous. So he said GAA, global asset allocation, that we should start to expand in allocating assets globally, GAA. That is why he started to recommend European shares or American shares. Or he also talked about going to bonds instead of stocks. They were trying to create that trend. But unfortunately, the next president... was in charge of bonds originally, but was not a good president, so they were not able to see that trend take off. For SBI securities, foreign stock trading volume and revenue is shown here. Trading volume has been reaching record highs, and revenue remains high as well. SBI WRAP, fully automatic AI investments. Over 13 months, AUM went up to $35.4 billion and around 69,000 accounts. It should be higher than that. Real estate small-op beneficiary interests are shown here. The cumulative amount is growing, and we have investments in various real estate companies. We partner with various entities, and we had a dinner the other day. but they will work hard for you, basically. NISA, IRECO, the system is going to expand. It's going to turn into a permanent system, and the limit has expanded. And with that as a backdrop, we have overwhelming command in this part of the business for the number of accounts in particular. And out of the number of new NISA customers, New customers are 82.4%, and within that amount, 74.7% are novice investors. For Junior Nisa's share, we have 30% market share, which is overwhelming as well. So... The excluded deemed discontinued accounts is the case why numerous securities saw a decline. But we also do that, but we have been seeing an increase in accounts. However, there was somewhat of a deceleration in its growth. However, we are still growing. This is about IDECO. From May 19th, 2017... We have made IDECO administrative fees completely free of charge. Now, Risona is saying that they're going to do the same now, but we started way back in May 19, 2017. So, SBI Securities is overwhelmingly, once again, the industry leader in the cumulative number of individual defined contribution plan customers. It used to be Tokyo Marine, but then after, the trend has changed. The expansion of customer base by Nissan Ideco brings a positive effect to SBI group companies, especially in the asset management business. So SBI Asset Management, in September 2019, it started a low-cost index fund, the SBI V-Series, together with Vanguard. And net assets surpassed, as of end of March, 1 trillion yen. And SBI Asset Management started to offer, from December 2017, SBI Global Equity Index Fund. And it surpassed 100 billion yen in net assets. And I call it Snowman, Yuki Daruma, but it's for Yuki Daruma. And for Rio's Capital Works, the Hifumi series that began offering from October 2008 surpassed a total of over 1 million holders. The SBI, CSA Banking Group, promotes diversification of products and services by strengthening cooperation with the SBI Group. So it's basically providing products that contribute to solving social problems like green bond and sustainability deposits and so forth. Cooperation of financial intermediary and banking agency sectors. For SBI Shinsei Bank, connecting it with securities. We're trying to make a seamless situation and we're trying to cross-refer customers to one another. From SBI Shinsaibank to SBI Securities, compared to 2022 August, the volume of customers sent is 2.6 times higher, and the other way around, it is 21.6 times higher. So you can see that by connecting with SBI Securities, It will really help in expanding the customer base. You could tell from these numbers. And also, SBI Shinsei Connect, the automatic deposit and withdrawal service, has started. Also, Money Plaza, joint branches. We currently have three. AUM, in seven months, it has exceeded $10 billion since the start. And this is SBI Shinsei Bank Group with Aruhi. It used to be SBI Mortgage, but we released it once, and then we acquired it once again. And now it's in our group again. On a standalone basis, Aruhi did well at times and didn't do well in other times, I believe. So we left the good parts of the business so that we could refer more customers and expand the business even more so that is how we would like to to cooperate even more for the crypto asset business we can't just be sluggish with this business we need to accelerate the business and based off customer-centric thinking we are implementing measures for the crypto asset business as well We feel that this is what we need to do. So we would like to have a product lineup that are unique to the SBI group and expand them. And we would like to provide easy-to-understand products and services and strengthen crypto asset management services, such as expansion of staking services, et cetera. So we would like to basically increase what we offer globally. March and 2021 through March and 2023, the number of customers have increased by fivefold. And the red highlighted areas are areas that we newly engaged in in order to offer more services to investors. So Bitpoint is now our subsidiary. And we have been engaging in various types of business areas. Relatively speaking, I would say that for cryptocurrencies, they were more ahead, to be honest. And that is why we acquired the entity. And Mr. Tashiro was a very competent person. SPI, VC, trade, and Bitpoint, the exchange business. In order to fulfill diversified customer needs, we would like to expand services and make improvements. Staking services are something we would like to expand. In the industry, we are ahead. and doing delegate services and Flare token wrap services. And for Bitpoint, it has been able to be ranked number one in customer satisfaction, et cetera, et cetera, and various ways we would like to expand and improve the business. So regarding what is staking services, it is basically proof-of-stake schemes, crypto schemes, It is the reward for depositing crypto assets. If I go into detail, I can go on and on, because then I'll have to start talking about what is proof of stake. So I hope you could search this by yourselves. For the financial business, this will have a good synergy effect as well. So this is something I would like to promote even more of. We are doing M&A of the crypto asset business as well. HashHub is a research service for crypto assets in Web3. So we made this acquisition and also the acquisition of Bitpoint. We used to own 51%, but we turned it into a fully owned, wholly owned subsidiary regarding diversifying business fields. I touched on this earlier, but for the asset management business, we would like to position as a core business and through MA and joint ventures during fiscal 27, we would like to aim for 20 trillion assets under management. For assets under management, there are a lot of listed company shares as well. So as an investor too, with listed companies, we would like to strengthen our connections with them. the environment surrounding the asset management business, we would like to understand it well. So during fiscal 2024, we originally have the target of reaching 10 trillion for this year, and we're currently at 8 trillion. So we're pretty much close to 10 trillion already. And we are approaching a major turning point in Japan. We had that 20 million issue, people questioning whether we're going to be all right when we retire. But now we're entering a phase where interest rates are likely to rise. So people are questioning whether the Japanese economy is going to be fine. And for taxes. Defense expenses are going to probably continue to go up. And for children, they're talking about all these subsidies, and they're having a competition between the ruling party and the non-ruling parties. And then when you think about the fiscal position of Japan, they're neglecting primary balance. So what the heck is going to happen to Japan as a country? So GDP per capita is continuing to decline. It's going down and down. and the economic positioning of Japan, compared to when we were young, it is going down. Many things are. So is Japan okay? Whenever Kishida-san goes abroad, he's using taxes, taxpayers' money, and He's spreading it globally, but is Japan in a position to do that? I'm really concerned about the future of Japan. That is why we need to defend ourselves. 54% of personal financial assets are held at deposits, but interest rates for deposits is close to zero. So, depositing your money at zero rates, is your future all right? How should you manage your money? Unless you manage your money, the future of Japan is in a critical state. Mr. Ueda now has taken the helm of the BOJ from Kurira-san. And for ETFs, it's the BOJ that is the largest holder of ETFs. Most of the names have the BOJ as the leading shareholder. And they're saying they're going to trade it mark-to-market? But what's going to happen if they are affected by a major loss? They'll probably say, all we have to do is print bills. Each and every one of us in Japan needs to manage our money in order to protect our livelihoods. Finally, they're talking about teaching children about managing their assets through public education. They were saying before they weren't teaching our children before, and they were trying to think that people will be able to come to terms with what they were supposed to do with their money. But are you able to design your future without learning? So, SBI Asset Management's index funds has steadily increased. In one year, it increased by 50.3%. So, the mindset of people personally has started to change around asset management. I think people are thinking increasingly that they have to defend themselves.

for regional financial institutions. Why? Without having any capital relationship, 69% out of a 2.2 trillion AUM, 69% are from those business financial institutions without capital relationship with us. They... Well, until maturity, if you hold the government bond, if you hold them to the maturity, you will not make loss. That was the mindset in the past, but it's not the era as such. ISRS is now applied to come up with the business performance across the board, and what will happen? So just saying that the government bonds are held for maturity will be fine. The government is doubting this. But this is not the case. You need to keep the transparency. I think that is the starting point for everything. Therefore, how can we realize the improvement in this situation? Global asset management group of SBI has 4.7 trillion yen as investment assets now as the balance. Through organic growth and use of M&A now, 7.9 trillion yen is achieved as the balance now. an asset management business which is approaching a major turning point. The company had set a new goal of achieving 20 trillion yen in assets under management by fiscal year 2027, and it is promoting M&A and establishment of joint ventures to expand its earnings base. The interest rate trend, of course, the global interest rate is rising rapidly except for Japan. Now, the change is being seen in relationship among traditional asset class equities and fixed income classes. Well, for both asset classes over the first 15 months, there is not much diversification benefits. Therefore, more sophisticated technology for asset management needed to be deployed by people who are versed in those skills. So there is a need for further sophistication in asset management technology. and to acquire quality asset management and also sophistication, and to build a global asset allocation structure, you needed to acquire quality asset management companies and strategic alliances. Together with Spimco, over many years in the past, together with the government of Singapore affiliated companies, Spimco, had a joint venture, but that went bankrupt. And since then, PIMCO has never established a joint venture. But Doug Hodge was the CEO of PIMCO. He negotiated with me. And then for the first time, after a long interval, they established a joint venture with us. And then the AUM reaches 1.2 trillion. And Vanguard as well exceeds 1.2 trillion in AUM. with us. Alternative assets management needs to be promoted. We needed to find a partnership with quality company in this area as well. 20 trillion yen by the end of fiscal year 2027 is the target. In Japan and outside of Japan, innovative technologies needed to be deployed. We have to develop new business areas such as EV3 by incorporating innovative technologies. For ST as well, I think it is becoming more visible. This is a security token. Now there is a voluntary self-regulatory organization. I led this initiative saying that we needed to establish this kind of organization. We are leading the leadership of the Japan STO Association. I am the president. And now the 72 companies have become members of this association. And Digital Asset Co-Creation Consortium. contributed to the formulation of the proposal on digital securities PTS at consortium. And we also led the move towards the collaboration through between the Osaka Digital Exchange, which was led by us. And there are five initiatives as the track record of SD issuance led by us. The property or real estate backed SD, I believe that this is the key. I believe this will further expand significantly going forward. And the issuance market as well as distribution market, once this ODX is established, we believe that these markets will start functioning again. and also it is expected that the market will expand explosively. And this is the capital relationship in the ODX. We own 70%, SMBC 20%, Nomura Holdings 5%, Diver Securities Group holds 5%. We are inviting three foreign capital-affiliated companies. We are reaching the final stage of negotiations. I will be able to announce soon. And in earnest, in Osaka, SD, digital securities, PTS, a starting operation, which I believe will lead to the creation of the market. That is what I would like to see. And... Over the past three years, due to the COVID-19, we have been able to move in Osaka. We would like to try to make Osaka as the international global financial center. We are taking bold steps now. And SBI VC Trade will endeavor towards growth of institutional client base by strengthening its Web3-related business. Well, this SBI Web3 wallet is very good. NFT-accommodated custodial wallet. This is the first ever in Japan. And there is no need for managing wallets and buying and sending crypto assets for purchasing NFTs. I believe this is excellent and convenient. And for corporate customers, SBI VC for Prime, the provision of this SBI VC for Prime has been started. And blockchain games as well. I believe that this will become more and more popular, and this is being developed at Gubi as well. Other than that, the unique game-specific blockchain is developed, and we have been making the capital and digital partnership, and also we have formed such a partnership with Turingum as well, and related to crypto assets. We are going to build this kind of ecosystem. SBI NFT brings the world of Web3 closer by enhancing corporate clients developing their NFT business and token connect. This is to offer all functions such as issuance and posting and purchase and management NFPs on the web API. And celebrities may jot down the graffiti and that can be sold as NFT. I am looking forward to what kind of graffiti will be sold through this. And Securitize Japan is partnering with us in order to... provided the new digital securities in the Web3 era. This will be provided as the STs with privileged NFTs. So as the digital benefits or privileges NFTs will be applied, we endeavor to establish a system to trade digital assets globally in cooperation with partners in Singapore We have started already various activities because of the institutional and legal systems which are easier in Singapore than those in Japan. We have been talking with the regulatory authorities of financial services and JFSA is getting the information and saying that they are ready to participate and SBI digital markets and Siam securities companies And now there has been the investment by its subsidiary and Asia Next Six Group in Switzerland is joining in this scheme. So the largest ever scale of the global platform is going to – corridors is going to be established. And there was no custody. But Zodiac Custody, which is a company in the U.K., we are investing in this company – And furthermore, we are going to establish the Japan entity of this company. Targeting the institutional investors, we plan to offer digital asset custody services for them. So one by one, we need to build infrastructure pieces one after another. SBI traceability. This is well received recently. For example, one of the leading products from Japan, sake or nihonshu, with breweries. For example, at Born, Kato Kichibe Shoten, and the premium line of Nizawa Brewery and the Toki Sake Association. So to authenticate that this is the genuine product from these breweries, like through digital pairing, in order to authenticate the genuine nature of these products, and then this can be offered for export market. Or Pan Pacific, which is running the Don Quixote in the Don Doki, Thailand, And they are selling the strawberry from Kumamoto Prefecture, introducing Shimenawa. Shimenawa is to sell these products, saying that this is truly from Kumamoto. If they are produced from Japan, and then they believe that this is good things, and therefore they are ready to pay money for them. And we are taking various measures to increase our awareness among the digital generation through games, etc. The other day, Nexum 2023 was held by SBI Neo Festival and over 260,000 participants are viewing on the show. So this was the first day of our initiative and trial in the digital space era. Branding has been tried in this way. This was very effective. SBI Gaming Kids Day with Pokemon Unite. Over one month and then 150,000 was surpassed in terms of the number of views and also the percentage of female viewers exceeding 30%. So this was really effective and the cost effectiveness was overwhelmingly better than others. Now, the esports competitors, well, they are performing very well, winning the trophy and approximately 2.93 million per 90 days for the number of unique viewers. And it was quite effective. It was good to create this. Gumi, as I said, we started to invest into this entity. And as soon as possible, we like to ask them to complete a blockchain game. And Jungle is a quite interesting venture or startup company in Singapore. It is not allowed because of the gambling law prohibition in Japan. We still have such an old law which prohibits us from doing this. You don't have to care about such law in Singapore. This is an important announcement. I'd like to talk about the TOB initiation for SBI Shinsaibank. I don't think that it is important to explain this background. There are a lot of things in preparation for the TOB, and then once it is done, our shares stand at 50.04%. So that is it and then now TOB will be done again.

Excuse me.

I have been talking over two hours. I have a sore throat now. Excuse me. Mr. Morita, could you please speak on behalf of me?

Our microphone is not on for you.

I am the representative director Morita of SBI Regional Banking Holdings and I'd like to talk about the background relating to TLB and also overview of the TLB here. Today, starting from today or rather we have made announcement today and from the 15th of May we are going to start the TLB process and 2,800 yen per share is the price for TLB and this time If you go to the next page, you will see the trend of the share price and premiums.

And next page, we're showing the transaction scheme. SBI Holdings holds 50.4%, and the Deposit Insurance Corporation and Resolution and Collection Corporation has turned to 2.98%, and the other shareholders 26.98%. Through the TOV this time, us, SBI, and the Deposit Insurance Corporation and Resolution and Collection Corporation only will become the shareholders. So after TOB, we will add the squeeze out. And with this, we would like to bring it to delisting, and the shareholders will only be the government-related institutions and us, is what we assume. And regarding this time's TOB, we have not set the minimum. So basically, as a TOB, it is going to succeed. And up to the squeeze out, the flow... The Deposit Insurance Corporation and Resolution Collection Corporation, with them, we do have an agreement. And towards this TOB, the government shareholders, they will not respond or apply for the TOB. And we have agreed upon this point. And regarding the following squeeze-out, they do agree. And that is agreed upon in an agreement. And the last page, I believe... These are agreed items between the subjected entity and the government related shareholders. SBI since a bank through this TOB has shown their agreement and they are recommending the shareholders to apply or respond to this TOB. And after that, the aim is the privatization and the medium to long-term management strategy is going to be built and executed. As Mr. Kitawa explained before, we are in an economic situation that is full of uncertainties, and within that situation, we are going to pursue more synergy and reduce the listed maintenance cost, and we have a planned location of the optimal management resources. And we believe that synergies and benefits can be realized. And the government related, the government shareholders have recommended to participate in this TOB. And as a condition that this is not going to change, they are not going to participate in this. And they are going to exercise the four resolution towards this item regarding squeeze out. So we will be able to succeed in this TOB is what we assume. And regarding the road to the repayment of the public funds, basically, we have clearly stated the yen to the single digit. And after the squeeze-out is done and the privatization is done, and by June end of 2025, we are going to agree on the specific structure of repaying the public funds. Regarding this, Deposit Insurance Corporation and Resolution Collection Corporation, both institutions have disclosed about this at 4 p.m. Japan time. And the memorandum will be able and the specification document of the TOB can be read on their website. So you will know what the details are, but the basic content is as I have explained. So from here, we like to bring it to TOB, squeeze out, and delisting or privatization. That is all for the explanation. Thank you.

So that's where we are. Nothing more and nothing less. So that concludes our explanation.